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Earning's Compute the liquidity and profitability ratios of Blossom Company for 2021 and 2022. (Round Curent ratio, Asset tumo per share to 2 decimal places, e.g. 15.50 and round all other answers to 1 decimal place, e.g. 15.5. Round % change to 0 decimal places, for e.g. 1% and if % change is a decrease show the numbers as negative, e.g.-1% or (1%).) LIQUIDITY Current ratio Accounts receivables turnover Inventory turnover 2021 :1 times times 2022 times times % Change 0 % %

Earning's Compute the liquidity and profitability ratios of Blossom Company for 2021 and 2022. (Round Curent ratio, Asset tumo per share to 2 decimal places, e.g. 15.50 and round all other answers to 1 decimal place, e.g. 15.5. Round % change to 0 decimal places, for e.g. 1% and if % change is a decrease show the numbers as negative, e.g.-1% or (1%).) LIQUIDITY Current ratio Accounts receivables turnover Inventory turnover 2021 :1 times times 2022 times times % Change 0 % %

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please solve for PART A (liquidity’s current ratio, account receivables turnover, and inventory turnover/profitability’s profit margin, asset turnover, return on assets, and earnings per share) and PART B (return on common stockholder’s equity, debt to assets ratio, and price earnings ratio)
The following financial information is for Blossom Company. Assets Cash Debt investments (short-term) Accounts receivable Inventory Prepaid expenses Land Building and equipment (net) Total assets Liabilities and Stockholders' Equity Notes payable Accounts payable Accrued liabilities Bonds payable, due 2025 Common stock, $10 par Retained earnings Total liabilities and stockholders' equity Sales revenue Cost of goods sold Gross profit Operating expenses BLOSSOM COMPANY Balance Sheets December 31 Net income 1. Additional information: 2. 3. 4. 5. BLOSSOM COMPANY Income Statements For the Years Ended December 31 2022 $898,000 643,000 255,000 198,000 $57,000 2022 $72,000 54,000 109,000 235,000 26,000 134,000 $170,000 66,000 41,000 249,000 198,000 165,000 259,000 $889,000 $708,000 $889,000 2021 $785,000 576,000 209,000 159,000 2021 $ 67,000 39,000 92,000 $50,000 164,000 27,000 134,000 185,000 $102,000 54,000 41,000 171,000 198,000 142,000 $708,000 Inventory at the beginning of 2021 was $116,000. Accounts receivable (net) at the beginning of 2021 were $89,000. Total assets at the beginning of 2021 were $631,000. No common stock transactions occurred during 2021 or 2022. All sales were on account.
Transcribed Image Text:The following financial information is for Blossom Company. Assets Cash Debt investments (short-term) Accounts receivable Inventory Prepaid expenses Land Building and equipment (net) Total assets Liabilities and Stockholders' Equity Notes payable Accounts payable Accrued liabilities Bonds payable, due 2025 Common stock, $10 par Retained earnings Total liabilities and stockholders' equity Sales revenue Cost of goods sold Gross profit Operating expenses BLOSSOM COMPANY Balance Sheets December 31 Net income 1. Additional information: 2. 3. 4. 5. BLOSSOM COMPANY Income Statements For the Years Ended December 31 2022 $898,000 643,000 255,000 198,000 $57,000 2022 $72,000 54,000 109,000 235,000 26,000 134,000 $170,000 66,000 41,000 249,000 198,000 165,000 259,000 $889,000 $708,000 $889,000 2021 $785,000 576,000 209,000 159,000 2021 $ 67,000 39,000 92,000 $50,000 164,000 27,000 134,000 185,000 $102,000 54,000 41,000 171,000 198,000 142,000 $708,000 Inventory at the beginning of 2021 was $116,000. Accounts receivable (net) at the beginning of 2021 were $89,000. Total assets at the beginning of 2021 were $631,000. No common stock transactions occurred during 2021 or 2022. All sales were on account.
Compute the liquidity and profitability ratios of Blossom Company for 2021 and 2022. (Round Curent ratio, Asset turnover and Earnings per share to 2 decimal places, e.g. 15.50 and round all other answers to 1 decimal place, e.g. 15.5. Round % change to O decimal places, for e.g. 1% and if % change is a decrease show the numbers as negative, e.g.-1% or (1%).) LIQUIDITY Current ratio Accounts receivables turnover Inventory turnover PROFITABILITY Profit margin Asset turnover Return on assets Earnings per share $ 1. 2. 3. 2021 Return on common 2021 stockholders' equity Debt to assets ratio :1 Price earnings ratio times times 2022 % times % The market price of common stock was $9 and $13 on December 31, 2022 and 2023, respectively. Situation 19,000 shares of common stock were sold at par on July 1, 2023. Net income for 2023 was $53,000. % 2022 All of the notes payable were paid in 2023. All other liabilities remained at their December 31, 2022 levels. Total assets on December 31, 2023, were $894,000. Given below are three independent situations and a ratio that may be affected. For each situation, compute the affected ratio (1) as of December 31, 2022, and (2) as of December 31, 2023, after giving effect to the situation. (Round Debt to assets ratio to 0 decimal places, eg. 15 and round all other answers to 1 decimal place, eg. 15.5. Round % change to O decimal places, for e.g. 1% and if % change is a decrease show the numbers as negative, eg. -1% or (1%).) 2022 times 2023 :1 times % times % % times times % % Change % Change Ratio Return on common stockholders' equity Debt to assets ratio Price-earnings ratio 0 % Change % % % % % %
Transcribed Image Text:Compute the liquidity and profitability ratios of Blossom Company for 2021 and 2022. (Round Curent ratio, Asset turnover and Earnings per share to 2 decimal places, e.g. 15.50 and round all other answers to 1 decimal place, e.g. 15.5. Round % change to O decimal places, for e.g. 1% and if % change is a decrease show the numbers as negative, e.g.-1% or (1%).) LIQUIDITY Current ratio Accounts receivables turnover Inventory turnover PROFITABILITY Profit margin Asset turnover Return on assets Earnings per share $ 1. 2. 3. 2021 Return on common 2021 stockholders' equity Debt to assets ratio :1 Price earnings ratio times times 2022 % times % The market price of common stock was $9 and $13 on December 31, 2022 and 2023, respectively. Situation 19,000 shares of common stock were sold at par on July 1, 2023. Net income for 2023 was $53,000. % 2022 All of the notes payable were paid in 2023. All other liabilities remained at their December 31, 2022 levels. Total assets on December 31, 2023, were $894,000. Given below are three independent situations and a ratio that may be affected. For each situation, compute the affected ratio (1) as of December 31, 2022, and (2) as of December 31, 2023, after giving effect to the situation. (Round Debt to assets ratio to 0 decimal places, eg. 15 and round all other answers to 1 decimal place, eg. 15.5. Round % change to O decimal places, for e.g. 1% and if % change is a decrease show the numbers as negative, eg. -1% or (1%).) 2022 times 2023 :1 times % times % % times times % % Change % Change Ratio Return on common stockholders' equity Debt to assets ratio Price-earnings ratio 0 % Change % % % % % %
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